Chamath Warns Retail Investors To Avoid His New SPAC

Chamath Warns Retail Investors To Avoid His New SPAC

On Tuesday, venture capitalist and All-In podcast host Chamath Palihapitiya took Wall Street by surprise. His new SPAC, called “American Exceptionalism,” raised $345 million to target deals in energy, AI, crypto/DeFi, and defense. Image Credits:David Paul Morris/Bloomberg via Getty Images But here’s the twist: Chamath warns retail investors to avoid his new SPAC. Despite the hype, he’s urging everyday traders not to jump in. Only a tiny fraction — just over 1% — is available to the public, while nearly 99% is already locked up by large institutions. Why Chamath Is Telling Retail Investors To Stay Away It’s unusual to see a high-profile founder launch a new stock and then warn against buying it. Chamath openly posted on X that SPACs are not well-suited for retail traders. He explained that these vehicles are designed for institutional investors who can handle volatility, diversify across portfolios, and provide long-term support. For most retail investors, he suggests the risks far outweigh…